The tax incentive for data centres comes with environmental and market targets, and non-compliance is costly.
Law No. 15,504/2026 established the Special Taxation Regime for Datacenter Services, known as Redata. In practice, this tax incentive for data centres suspends federal taxes on the purchase of technology equipment, provided that the company meets the targets set out in the statute. If it fails to do so, it pays everything with interest and a fine.
Which taxes are suspended and who may join the incentive
Companies that install, modernise or expand data centres in Brazil may join the regime. The company must be in good standing with the federal tax authorities and must not be listed in the Cadin (the federal register of defaulting debtors). Companies under the Simples Nacional (the simplified tax regime for small businesses) are excluded.
The suspension covers PIS/Pasep, Cofins, IPI (federal excise tax on manufactured goods) and Import Duty, including on imports. It also covers PIS and Cofins on importation. In addition, the supplier that manufactures the equipment may be granted co-qualification for as long as the contract with the qualified company remains in force.
The benefit is valid for five years. The PIS, Cofins and IPI benefits, however, produce effects only until 31 December 2026, pursuant to Law No. 15,504/2026.
Targets assumed by the company in exchange for the benefit
Qualification requires cumulative commitments. First, the company must allocate to the domestic market at least 10% of its supply of processing and storage capacity. It must also meet its entire energy demand from renewable or low-emission sources.
The water efficiency index must be 0.05 L/kWh or less, measured annually. The company must further invest 2% of the value of the benefited products in research and innovation. On the other hand, companies in the North, Northeast and Central-West regions are granted a 20% reduction in part of the targets.
Failure to meet the targets turns the suspension into a debt
Companies that fail to meet the environmental, energy and investment targets must pay the suspended taxes, with interest and a late-payment fine calculated from the taxable event. If the supply to the domestic market falls short, the benefits on new purchases are suspended. After 180 days without remediation, the qualification is cancelled.
It is our understanding that contracts between qualified companies and their suppliers warrant review, because the risk borne by one party may affect the other.
Deadlines and calculation factors depend on implementing regulations. For this reason, it is advisable to map out the targets and the liability clauses in each contract from now on.
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